Lakeland - Lanier County
How To Start a Business
Guide for Entrepreneurs
Compiled by:
Lakeland - Lanier County Chamber of Commerce
111 Valdosta Hwy
P.O. Box 215
Lakeland, GA 31635
E-mail:
Website: lakelandlanierchamber.com
TABLE OF CONTENTS
Table of Contents 1
What is an entrepreneur? 2
Is Entrepreneurship for you? 3
Self-Biz Quiz 4
One-Year Checklist for Entrepreneurs 6
Business Plan 10
Feasibility & Marketing Strategy 12
Determining Cash Needed to Start a Business 14
Demographic Information 15
Procurement 15
Legal Aspects of Starting a Business 15
Licensing & Permits Information 17
Zoning 18
Building Construction/Renovations/Occupancy 18
Health Permits 19
Trade Name Registration 19
Federal/State Licensing 19
Taxes 21
Utilities 24
Labor & Safety Regulation Information 25
Employer Tax Responsibilities 26
Application, Hiring & Termination Process 38
Financing Information 30
International Trade 32
Resource Directory 34
Local Resources 37
Glossary of Terms 38
State Issued Licenses 40
The contents of this publication are presented for informational purposes only and should not be considered in any way legal or professional assistance. We encourage you to seek the advice and council of a licensed professional when dealing with legal and financial matters.
While care has been taken to provide accurate, up-to-date information, the information presented has been collected from numerous sources and is subject to errors and changes and should be further researched for updates and accuracy.
WHAT IS AN ENTREPRENEUR?
v Someone who organizes and maintains a business venture
v Someone who takes on the risk and does what he/she wants in order to make a profit
v Someone who can coordinate the resources available to meet a need.
How can you become an entrepreneur? How can you start your own business?
Lakeland - Lanier County Chamber of Commerce has designed this booklet to simplify transition into the role of an entrepreneur
This Guide for Entrepreneurs in Lanier County will make establishing your own business easier by giving you ‘one-stop shopping’ for the information you will need. The Lakeland - Lanier County Chamber of Commerce is determined to promote economic development.
We believe that begins with you. By giving you the proper tools, we can help build a strong economic foundation. We hope this booklet will be of assistance.
In order to receive the maximum benefits of the information contained in this booklet, we suggest you treat it as you would a workbook. Start at the beginning and work through to the end, making notes along the way.
IS ENTREPRENEURSHIP FOR YOU?
There is no way to eliminate all the risks associated with starting a small business. You can improve your chances of success with good planning and preparation. A good starting place is to evaluate your strengths and weaknesses as the owner and manager of a small business. Carefully consider each of the following questions.
Are you a self-starter? It will be up to you – not someone else telling you to develop projects, organize your time and follow through on details.
How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers and professionals such as attorneys, accountants or consultants. Can you deal with a demanding client, an unreliable vendor or cranky staff person in the best interest of your business?
How good are you at making decisions? Small business owners are required to make decisions constantly, often quickly, under pressure and independently.
Do you have the physical and emotional stamina to run a business? Business ownership can be challenging, fun and exciting, but it is also a lot of work. Can you face 12-hour days six or seven days a week?
How well do you plan and organize? Research indicates that many business failures could have been avoided through better planning. Good organization of financials, inventory, schedules and production can help avoid many pitfalls.
Is your drive strong enough to maintain your motivation? Running a business can wear you down. Some business owners feel burned out by having to carry all the responsibility on their shoulders. Strong motivation can make the business succeed and will help you survive slowdowns as well as periods of burnout.
How will the business affect your family? The first few years of business startup can be hard on family life. The strain of an unsupportive spouse may be hard to balance against the demands of a business. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk.
4
Self-Biz Quiz Are you the type of person who should
open their own business? Take this short quiz and see how your score adds up.
MOTIVATION Disagree Strongly Agree
I constantly see business opportunities or ideas with potential commercial value.
/1 2 3 4 5 6 7 8 9 10
I like growing or building businesses or taking ideas and making something of them.
/1 2 3 4 5 6 7 8 9 10
I regularly come up with new ideas on doing things better or more efficiently.
/1 2 3 4 5 6 7 8 9 10
I am able to find solutions to challenges and problems.
/1 2 3 4 5 6 7 8 9 10
I am able to find the help, assistance and resources I need to be successful.
/1 2 3 4 5 6 7 8 9 10
I am a dynamic person providing vision, hope and energy to those with whom I work and partner.
/1 2 3 4 5 6 7 8 9 10
I am a hardworking person. I do what it takes to succeed.
/1 2 3 4 5 6 7 8 9 10
I am able to adapt to changes and surprises quickly and successfully.
/1 2 3 4 5 6 7 8 9 10
I am able to successfully manage risk associated with creating and growing a business.
/1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
I thrive on learning. I am constantly seeking new information that
can help me with my business.
/I am motivated by success and driven to do well.
/1 2 3 4 5 6 7 8 9 10
I believe in working with others who can help me make my dream a reality.
/1 2 3 4 5 6 7 8 9 10
CAPACITY RELATED TO BUSINESS SKILLS
Consider yourself and other members of your management team
Ability to assess market opportunities / 1 2 3 4 5 6 7 8 9 10Ability to develop products for services / 1 2 3 4 5 6 7 8 9 10
Ability to provide products or services / 1 2 3 4 5 6 7 8 9 10
Marketing and communications capacity / 1 2 3 4 5 6 7 8 9 10
Fiscal management / 1 2 3 4 5 6 7 8 9 10
Ability to acquire financial capital / 1 2 3 4 5 6 7 8 9 10
Personnel or team development management / 1 2 3 4 5 6 7 8 9 10
Ability to develop and sustain partnerships / 1 2 3 4 5 6 7 8 9 10
Quality control / 1 2 3 4 5 6 7 8 9 10
CAPACITY TO NETWORK AND PARTNER
I am comfortable seeking information from othersI regularly network to gain information for my business.
I have an extensive resource network I am constantly building. / 1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
I am comfortable with partnerships / 1 2 3 4 5 6 7 8 9 10
I have two or more partnerships associated with my business. / 1 2 3 4 5 6 7 8 9 10
I have learned how to deal with the challenges of partnering. / 1 2 3 4 5 6 7 8 9 10
SUPPORT FROM FAMILY AND COMMUNITY
I am challenged and happy in my work building a business / 1 2 3 4 5 6 7 8 9 10There is good balance between my work and personal life / 1 2 3 4 5 6 7 8 9 10
Family and friends are supportive and encourage me. / 1 2 3 4 5 6 7 8 9 10
My community is supportive of me and my undertaking / 1 2 3 4 5 6 7 8 9 10
SCORE Self-Biz Quiz
SCORING
0-25 points Low Potential
26-50 points Some Potential
51-75 points Moderate Potential
76-100 points High Potential
Questions / Total Points / Value Factor / Points1-2 / X / 1.0 / =
3-12 / X / 0.25 / =
13-21 / X / 0.25 / =
22-27 / X / 0.25 / =
28-32 / X / 0.25 / =
For information on starting your own business, contact:
Lakeland - Lanier County Chamber of Commerce
111 Valdosta Hwy
P.O. Box 215
Lakeland, GA 31635
229-482-9755 /Fax 229-482-9501
Email:
Lakeland-Lanier County Economic Development
Dub Music
402 W. Main St
Lakeland, GA 31635
229-482-3385
ONE YEAR CHECKLIST FOR ENTREPRENEURS
Starting your own business is not something to be rushed into. Careful, advanced planning can ensure the success of your venture. Below is a suggested one-year plan.
ONE YEAR BEFORE START-UP
q Refine your ideas in writing. Determine exactly where you want to go.
q Decide what business you want to start. Be specific in your business definition.
q Access the impact on your family and personal life. How will this affect your relationships? Will your family support the use of finances and time?
q Begin research. You must determine if there is a need for your product. This research can be performed by students, professionals or on your own.
q Build your skills by taking management/business courses. Contact VTC/VSU about continuing education courses or Workforce Development Center Business and Industry Services for options.
Valdosta Technical College Valdosta State University
4089 Val Tech Rd 1500 N. Patterson St.
Valdosta, GA 31602 Valdosta, Ga. 31698
229-333-2100 229-333-5800
q Contact the Small Business Development Center for assistance in writing a business plan.
q Contact GA Department of Labor for information on educational seminars on labor/safety issues.
SIX MONTHS BEFORE START-UP
q Determine the focus of your business. What do you want to specialize in? It is easier to excel at one area than at many.
q Start writing your business plan
q Define your target markets. Who is your intended clientele? Who should you aim your advertising towards?
q Research business and trade organizations. Most areas of business have agencies and organizations set up to facilitate business. Take advantage of what these groups have to offer.
q Seek the best location for your business. Do you need little or lots of space? Would your business be better suited downtown or in rural part of the county? Is a storefront location even needed or can you work from your home? Location can make or break a business. Conduct the search on your own or contact a real estate agent.
FOUR MONTHS BEFORE START-UP
q Name your business. Be careful in deciding on a name and be aware that someone may already be using the name. Have a few back-up ideas. You can check to see if a name is being used by contacting the Georgia Secretary of State’s office.
q Select a business location. After seeking out several possible locations, now is the time to choose one. Make sure the location you choose is within your budget.
q Select outside advisors. This will be a very hectic time. It will be beneficial to have people on whom you can call to listen to your ideas, problems and plans. These people will provide you with guidance, constructive criticism and feedback. They should be people experienced and knowledgeable in business.
q Set up a network of mentors. Select people who can help you by giving you insight and ideas.
q Choose your business’ legal form. Will you be a partnership, sole proprietorship or corporation? Legal form should be chosen very carefully as it can impact your business in many ways.
q Set up bookkeeping, accounting and office systems. How are you going to operate your office? If you are going to keep your own books, then you need to learn or refresh your skills. Are you going to hire a bookkeeper/bookkeeping firm?
q Seek outside demographic information. Gather secondary information.
q Work on your business plan.
THREE MONTHS BEFORE START-UP
q Determine your cash needs. How much money do you need to start up? What will your monthly variable and fixed costs? What is your break-even point? These are all questions that must be answered. You must estimate your cash flow.
q Review preliminary financial objectives. How much profit do you expect to make? Are you planning on making investments? What is your intended cash flow?
q Decide on your pricing strategy. After determining your variable and fixed costs, decide what your markup rate will be. You will also need to consider demand and competitive factors in setting your price.
q Forecast sales. Contact the SBDC or others in your field to help you forecast accurately.
q Determine your company’s employee needs. How many people do you need on your staff? This is important to decide as it affects your requirements for insurance, etc.
q Project your cash flow. Write out an estimated statement of revenues and expenditures. This statement should cover one calendar year. Also project your net cash flow for the entire year.
q Work on your business plan.